Bermuda-based Argo Group International Holdings, Ltd. said ithas “effectively completed” its deal to acquire HeritageUnderwriting Agency plc, after meeting all the conditions of atransaction first announced in early April.

Argo said today that all conditions have been satisfied orwaived.

Specifically, Argo said it has received valid acceptances of theoffer with respect to 62,960,189 Heritage shares and that Argo hasacquired 7,691,703 Heritage shares. In the aggregate, these sharetotals together represent roughly 90 percent of the existing issuedordinary share capital of Heritage.

“We are very pleased to have concluded this transaction in sucha timely manner,” said Mark Watson, Argo Group president and chiefexecutive officer.

He said in a statement, “The acquisition of Heritage is animportant step in our evolution as a leading internationalspecialty underwriter, and one that brings with it increasedopportunities for product and market growth and development andprofitable returns for our shareholders, clients andemployees.”

During a conference call last month, Mr. Watson noted that the“more international approach” of his company got a jumpstart fromArgo's merger with property-catastrophe reinsurer PXRE Group lastyear. The merger established an international reinsuranceoperation, now named Peleus Re, in Bermuda.

Commenting on the offer for Heritage, Mr. Watson said theLloyd's operation and Argo are similar in that both targetsmall-account business. He noted, however, that Argo's U.S.specialty insurance operations, Argonaut Specialty and ColonyInsurance, focus on casualty risks, while Heritage has a book thatis predominately property.

In addition to a worldwide property unit focusing on commercialaccounts, he noted that Heritage does write some liability risks,but that these are non-U.S. liability risks, making the operationscomplementary to Argo's U.S. operations.

In a press statement today, Heritage CEO Richard Pexton alsohighlighted the synergies. “Our complementary books of business,shared commitment to disciplined underwriting and client service,and desire to lead in the international specialty market make ArgoGroup's acquisition of Heritage a unique and compelling developmentfor both companies,” he said.

According to Argo, Heritage managed total premium capacity of?315m ($630 million) in 2007, and capacity is similar for 2008.

Gross premiums for Argo Group were nearly $1.2 billion in2007.

Argo Group's offer, which remains subject to the terms set outin the offer document distributed to Heritage shareholders on April17, 2008, will remain open for acceptance until further notice,Argo said.